Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]

Business Description, Basis of Presentation and Significant Accounting Policies

Business Description:

ClearOne, Inc., together with its subsidiaries (collectively, “ClearOne” or the “Company”), is a global market leader enabling conferencing, collaboration, and network streaming solutions. The performance and simplicity of our advanced, comprehensive solutions offer unprecedented levels of functionality, reliability and scalability.

Basis of Presentation:

Fiscal Year

– This report on Form

-K includes consolidated balance sheets for the years ended

December 31, 2018

and

2017

and the related consolidated statements of operations and comprehensive loss, shareholders' equity, and cash flows for each of the years

2018

and

2017.

Consolidation

– These consolidated financial statements include the financial statements of ClearOne, Inc. and its wholly owned subsidiaries. All inter-Company accounts and transactions have been eliminated in consolidation.

Use of Estimates

– The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales and expenses during the reporting periods. Key estimates in the accompanying consolidated financial statements include, among others, revenue recognition, allowances for doubtful accounts receivable and product returns, provisions for obsolete inventory, potential impairment of goodwill and of long-lived assets, and deferred income tax asset valuation allowances. Actual results could differ materially from these estimates.

Foreign Currency Translation

– We are exposed to foreign currency exchange risk through our foreign subsidiaries. Other than our subsidiaries in India and Spain, all other foreign subsidiaries are U.S. dollar functional, for which gains and losses arising from remeasurement are included in earnings. Our Spanish subsidiary is Euro functional, for which gains and losses arising from translation are included in accumulated other comprehensive income or loss. Our Indian subsidiary is Indian Rupee functional, for which gains and losses arising from translation are included in accumulated other comprehensive income or loss. We translate and remeasure foreign assets and liabilities at exchange rates in effect at the balance sheet dates. We translate revenue and expenses using average rates during the year.

Concentration Risk

– We depend on an outsourced manufacturing strategy for our products. We outsource the manufacture of all of our products to

third

party manufacturers located in Asia. If any of these manufacturers experience difficulties in obtaining sufficient supplies of components, component prices significantly exceeding the anticipated costs, an interruption in their operations, or otherwise suffer capacity constraints, we would experience a delay in production and shipping of these products, which would have a negative impact on our revenues. Should there be any disruption in services due to natural disaster, economic or political difficulties, transportation restrictions, acts of terror, quarantine or other restrictions associated with infectious diseases, or other similar events, or any other reason, such disruption

may

have a material adverse effect on our business. Operating in the international environment exposes us to certain inherent risks, including unexpected changes in regulatory requirements and tariffs, and potentially adverse tax consequences, which could materially affect our results of operations. Currently, we have

second

source of manufacturing for a portion of our products.

Significant Accounting Policies:

Cash Equivalents

– The Company considers all highly-liquid investments with a maturity of

three

months or less, when purchased, to be cash equivalents. The Company places its temporary cash investments with high-quality financial institutions. At times, such investments

may

be in excess of the Federal Deposit Insurance Corporation insurance limits.

Marketable Securities -

The Company has classified its marketable securities as available-for-sale securities. These debt securities are carried at estimated fair value with unrealized holding gains and losses included in other comprehensive income (loss) in shareholders’ equity until realized. Gains and losses on marketable security transactions are reported on the specific-identification method. Dividend and interest income are recognized when earned.

A decline in the market value of any available-for-sale security below cost that is deemed other than temporary results in a charge to earnings and establishes a new cost basis for the security. Losses are charged against “Other income” when a decline in fair value is determined to be other than temporary. We review several factors to determine whether a loss is other than temporary. These factors include, but are

not

limited to: (i) the extent to which the fair value is less than cost and the cause for the fair value decline, (ii) the financial condition and near term prospects of the issuer, (iii) the length of time a security is in an unrealized loss position and (iv) our ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. There were

other-than-temporary impairments recognized during the years ended

December 31, 2018

and

2017.

Accounts Receivable

– Accounts receivable are recorded at the invoiced amount. Generally, credit is granted to customers on a short-term basis without requiring collateral, and as such, these accounts receivable, do

not

bear interest, although a finance charge

may

be applied to such receivables that are past due. The Company extends credit to customers who it believes have the financial strength to pay. The Company has in place credit policies and procedures, an approval process for sales returns and credit memos, and processes for managing and monitoring channel inventory levels.

The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. Management regularly analyzes accounts receivable including current aging, historical write-off experience, customer concentrations, customer creditworthiness, and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. We review customer accounts quarterly by

first

assessing accounts with aging over a specific duration and balance over a specific amount. We review all other balances on a pooled basis based on past collection experience. Accounts identified in our customer-level review as exceeding certain thresholds are assessed for potential allowance adjustment if we conclude the financial condition of that customer has deteriorated, adversely affecting their ability to make payments. Delinquent account balances are written off if the Company determines that the likelihood of collection is

not

probable. If the assumptions that are used to determine the allowance for doubtful accounts change, the Company

may

have to provide for a greater level of expense in future periods or reverse amounts provided in prior periods.

The Company’s allowance for doubtful accounts activity for the years ended

December 31, 2018

and

2017

is as follows:

	Year Ended December 31,
	201 8		201 7
Balance at beginning of the year	$	472	$	187
Allowance increase (decrease)		159		287
Write offs, net of recoveries		-		(2	)
Balance at end of the year	$	631	$	472

Inventories

– Inventories are valued at the lower of cost or market, with cost computed on a

first

-in,

first

-out (“FIFO”) basis. In addition to the price of the product purchased, the cost of inventory includes the Company’s internal manufacturing costs, including warehousing, engineering, material purchasing, quality and product planning expenses and applicable overhead,

not

in excess of estimated realizable value. Consideration is given to obsolescence, excessive levels, deterioration, direct selling expenses, and other factors in evaluating net realizable value.

Distributor channel inventories include products that have been delivered to customers for which revenue recognition criteria have

not

been met.

The inventory also includes advance replacement units (valued at cost) provided by the Company to end-users to service defective products under warranty. The value of advance replacement units included in the inventory was

$184

and

$76,

as of

December 31, 2018

and

2017,

respectively.

The inventory consists of current inventory of

$13,228

and long-term inventory of

$8,953.

Long term inventory represents inventory held in excess of our current (next

months) requirements based on our recent sales and forecasted level of sales.

Property and Equipment

– Property and equipment are stated at cost less accumulated depreciation and amortization. Expenditures that materially increase values or capacities or extend useful lives of property and equipment are capitalized. Routine maintenance, repairs, and renewal costs are expensed as incurred. Gains or losses from the sale, trade-in, or retirement of property and equipment are recorded in current operations and the related book value of the property is removed from property and equipment accounts and the related accumulated depreciation and amortization accounts. Estimated useful lives are generally

two

ten

years. Depreciation and amortization are calculated over the estimated useful lives of the respective assets using the straight-line method. Leasehold improvement amortization is computed using the straight-line method over the shorter of the lease term or the estimated useful life of the related assets.

Goodwill and Intangible Assets –

Intangible assets acquired in a purchase business combination are amortized over their useful lives unless these lives are determined to be indefinite. Intangible assets are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets, which are generally

three

ten

years. Goodwill represents the excess of costs over the fair value of net assets of businesses acquired. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are

not

amortized.

Impairment of Goodwill -

Goodwill is measured as the excess of the cost of acquisition over the sum of the amounts assigned to tangible and identifiable intangible assets acquired less liabilities assumed. In accordance with the provisions of Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic

350,

Intangibles – Goodwill and Other

the Company performs impairment tests of goodwill on an annual basis in the

fourth

fiscal quarter, or sooner if a triggering event occurs suggesting possible impairment of the values of these assets.

We assess the recoverability of our

one

reporting unit’s carrying value of goodwill by making a qualitative or quantitative assessment. If we begin with a qualitative assessment and are able to support the conclusion that it is

not

more likely than

not

that the fair value of the Company is less than its carrying value, we are

not

required to perform the

two

-step impairment test. Otherwise, using the two−step approach is required (See

Note

– Business Combinations, Goodwill and Intangibles

). ClearOne and all of its subsidiaries are considered as

one

reporting unit for this purpose.

In the

first

step of the goodwill impairment test, we compare the carrying value the Company, including its recorded goodwill, to the estimated fair value. We estimate the fair value using an equity-value based methodology. The principal method used is an equity-value based method in which the Company’s market-cap is compared to the net book value. This value is then compared to total net assets. If the fair value of the Company exceeds its carrying value, the goodwill is

not

impaired and

further review is required. However, if the fair value of the reporting unit is less than its carrying value, we perform the

second

step of the goodwill impairment test to determine the amount of the impairment charge, if any.

The

second

step involves a hypothetical allocation of the fair value of the Company to its net tangible and intangible assets (excluding goodwill) as if the business unit were newly acquired, which results in an implied fair value of goodwill. The amount of the impairment charge is the excess of the recorded goodwill over the implied fair value of goodwill.

During the

third

quarter ended

September 30, 2017,

we recorded

$12,724,

or the entire value of goodwill, as an impairment charge. There were

such impairment charges during the year ended

December 31, 2018.

Impairment of Long-Lived Assets -

Long-lived assets, such as property, equipment, and definite-lived intangible assets subject to depreciation and amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset

may

not

be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset or asset group to estimated future undiscounted net cash flows of the related asset or group of assets over their remaining lives. If the carrying amount of an asset exceeds its estimated future undiscounted cash flows, an impairment charge is recognized for the amount by which the carrying amount exceeds the estimated fair value of the asset. Impairment of long-lived assets is assessed at the lowest levels for which there are identifiable cash flows that are independent of other groups of assets. The impairment of long-lived assets requires judgments and estimates. If circumstances change, such estimates could also change. Assets held for sale are reported at the lower of the carrying amount or fair value, less the estimated costs to sell.

During the

twelve

months ended

December 31, 2017

we recorded

$769

as a charge for impairment of an intangible asset consisting of customer relationships.

Adoption of New Revenue Standard:

January

2018,

as required, the Company adopted ASU

No.

2014

- Revenue from Contracts with Customers (Topic

606

) (“ASU

2014

09”

), ASU

No.

2015

- Revenue from Contracts with Customers (Topic

606

): Deferral of the Effective Date (“ASU

2015

14”

), ASU

No.

2016

- Revenue from Contracts with Customers (Topic

606

): Principal versus Agent Considerations (“ASU

2016

08”

), ASU

No.

2016

- Revenue from Contracts with Customers (Topic

606

): Identifying Performance Obligations and Licensing (“ASU

2016

10”

), ASU

No.

2016

- Revenue from Contracts with Customers (Topic

606

): Narrow-Scope Improvements and Practical Expedients (“ASU

2016

12”

) and ASU

No.

2016

- Technical Corrections and Improvements to Topic

606,

Revenue from Contracts with Customers” (“ASU

2016

20”

) (collectively “the New Revenue Standard”). To conform to the New Revenue Standard, the Company modified its revenue recognition policy as described further below.

Change in Accounting Policy:

January

2018,

the Company adopted the New Revenue Standard using the modified retrospective method, applying the guidance to all open contracts and recognized an adjustment to increase retained earnings by

$2,783,

reduce deferred product revenue by

$4,338

and reduce distributor channel inventories by

$1,555

as of that date. The comparative financial information has

not

been restated and continues to be presented under the accounting standards in effect for the respective periods. The Company applied the practical expedient and has

not

disclosed the revenue allocated to future shipments of partially completed contracts.

Prior to our change in accounting policy, revenue from product sales to distributors was

not

recognized until the return privilege had expired or until it can be determined with reasonable certainty that the return privilege had expired, which approximated when the product was sold-through to customers of our distributors (dealers, system integrators, value-added resellers, and end-users), rather than when the product was initially shipped to a distributor. At each quarter-end, we evaluated the inventory in the distribution channel through information provided by our distributors. The level of inventory in the channel fluctuated up or down each quarter based upon our distributors’ individual operations. Accordingly, each quarter-end deferral of revenue and associated cost of goods sold were calculated and recorded based upon the actual channel inventory reported at quarter-end. Further, with respect to distributors and other channel partners

not

reporting the channel inventory, the revenue and associated cost of goods sold were deferred until we received payment for the product sales made to such distributors or channel partners.

After the change in the accounting policy, substantially all of the Company’s revenue is recognized following the transfer of control of the products to the customer, which typically occurs upon shipment or delivery depending on the terms of the underlying contracts. During the

12 months ended

December 31, 2018,

revenue decreased by

$1,252

due to the impact of the adoption of the New Revenue Standard.

Revenue Recognition Policy:

The Company generates revenue from sales of its audio and video conferencing equipment to distributors, system integrators and value-added resellers. The Company also generates revenue, to a much lesser extent, from sale of software and licenses to distributors, system integrators, value-added resellers and end-users. The Company recognizes revenue when it satisfies a performance obligation in an amount reflecting the consideration to which it expects to be entitled. For sales agreements, the Company has identified the promise to transfer products, each of which are distinct, to be the performance obligation. The Company applies a

five

-step approach in determining the amount and timing of revenue to be recognized: (

) identifying the contract with a customer, (

) identifying the performance obligations in the contract, (

) determining the transaction price, (

) allocating the transaction price to the performance obligations in the contract and (

) recognizing revenue when the performance obligation is satisfied. Substantially all of the Company’s revenue is recognized at the time control of the products transfers to the customer.

Sales agreements with customers are renewable periodically and contain terms and conditions with respect to payment, delivery, warranty and supply, but typically do

not

require mandatory purchase commitments. In the absence of a sales agreement, the Company’s standard terms and conditions at the time of acceptance of purchase orders apply. The Company considers the customer purchase orders, governed by sales agreements or the Company’s standard terms and conditions, to be the contract with the customer. The Company evaluates certain factors including the customer’s ability to pay (or credit risk).

In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. Sales to distributors, are typically made pursuant to agreements that provide return rights with respect to discontinued or slow-moving products, referred to as stock rotation. Sales to distributors can also be subject to price adjustment on certain products, primarily for distributors with drop-shipping rights. Although payment terms vary, most distributor agreements require payment within

days of invoicing.

The Company recognizes revenue when it satisfies a performance obligation. The Company recognizes revenue from sales agreements upon transferring control of a product to the customer. This typically occurs when products are shipped or delivered, depending on the delivery terms, or when products that are consigned at customer locations are sold to dealers or end users. Revenue recognized during the

twelve

months ended

December 31, 2018

for equipment sales was

$27,369,

and for software, licenses, etc. was

$787.

Sales returns and allowances are estimated based on historical experience. Provisions for discounts and rebates to customers, estimated returns and allowances, ship and credit claims and other adjustments are provided for in the same period the related revenues are recognized, and are netted against revenues. For returns, the Company recognizes a related asset for the right to recover returned products with a corresponding reduction to cost of goods sold. The Company reviews warranty and related claims activity and records provisions, as necessary.

Frequently, the Company receives orders with multiple delivery dates that

may

extend across reporting periods. Since each delivery constitutes a performance obligation, the Company allocates the transaction price of the contract to each performance obligation based on the stand-alone selling price of the products. The Company invoices the customer for each delivery upon shipment and recognizes revenues in accordance with delivery terms. Although payment terms vary, distributors typically pay within

days of invoicing and dealers pay within

days of invoicing. As scheduled delivery dates are within

one

year, revenue allocated to future shipments of partially completed contracts are

not

disclosed.

The Company has elected to record freight and handling costs associated with outbound freight after control over a product has transferred to a customer as a fulfillment cost and include it in cost of revenues. Taxes assessed by government authorities on revenue-producing transactions, including value-added and excise taxes, are presented on a net basis (excluded from revenues) in the consolidated statements of operations and comprehensive income.

The details of deferred revenue and associated cost of goods sold and gross profit are as follows:

	As of December 31,
	2018		2017
Deferred revenue	$	283	$	4,635
Deferred cost of goods sold		-		1,555
Deferred gross profit	$	283	$	3,080

The Company offers rebates and market development funds to certain of its distributors, dealers/resellers, and end-users based upon the volume of product purchased by them. The Company records rebates as a reduction of revenue in accordance with GAAP.

The Company provides, at its discretion, advance replacement units to end-users on defective units of certain products under warranty. Since the purpose of these units is

not

revenue generating, the Company tracks the units due from the end-user, until the defective unit has been returned. Any amount due from the customer upon failure to return the products is accounted as receivable only after establishing customer's failure to return the products. The inventory due from the customer is accounted at cost or market value whichever is lower.

The following table disaggregates the Company’s revenue into primary product groups:

	Twelve months ended December 31, 2018		Twelve months ended December 31, 2017
Audio Conferencing	$	13,946	$	21,078
Microphones		9,012		13,430
Video products		5,198		7,296
	$	28,156	$	41,804

The following table disaggregates the Company’s revenue into major regions:

	Twelve months ended December 31, 2018		Twelve months ended December 31, 2017
North and South America	$	16,534	$	26,310
Asia (including Middle East) and Australia		7,924		11,087
Europe and Africa		3,698		4,407
	$	28,156	$	41,804

Warranty Costs

– The Company accrues for warranty costs based on estimated warranty return rates and estimated costs to repair. These reserve costs are classified as accrued liabilities on the consolidated balance sheets. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty returns, and repair cost. The Company reviews the adequacy of its recorded warranty accrual on a quarterly basis.

The details of changes in the Company’s warranty accrual are as follows:

	Year Ended December 31,
	2018			2017
Balance at the beginning of year	$	245		$	246
Accruals/additions		288			399
Usage/claims		(339	)		(400	)
Balance at end of year	$	194		$	245

Advertising

– The Company expenses advertising costs as incurred. Advertising costs consist of trade shows, magazine advertisements, and other forms of media. Advertising expenses for the years ended

December 31, 2018

and

2017

totaled

$1,037

and

$1,079,

respectively, and are included in sales and marketing on the consolidated statements of operations and comprehensive loss.

Research and Product Development Costs

– The Company expenses research and product development costs as incurred.

● sufficient taxable income within the allowed carryback or carryforward periods;

● future reversals of existing taxable temporary differences, including any tax planning strategies that could be utilized;

● nature or character (e.g., ordinary vs. capital) of the deferred tax assets and liabilities; and

● future taxable income exclusive of reversing temporary differences and carryforwards.

Income Taxes

– The Company uses the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carry-forwards. These temporary differences will result in deductible or taxable amounts in future years when the reported amounts of the assets or liabilities are recovered or settled. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided when it is more likely than

not

that some or all of the deferred tax assets

may

not

be realized. On a quarterly basis, the Company tests the value of deferred tax assets for impairment at the taxpaying-component level within each tax jurisdiction. Significant judgment and estimates are required in determining whether valuation allowances should be established as well as the amount of such allowances. The valuation allowance is based on our estimates of future taxable income and the period over which we expect the deferred tax assets to be recovered. Our assessment of future taxable income is based on historical experience and current and anticipated market and economic conditions and trends. In

2018,

as a result of negative evidence, principally

three

years of cumulative pre-tax operating losses, we concluded that it was more likely than

not

that net operating losses, tax credits and other deferred tax assets were

not

realizable and therefore, we recorded a full valuation allowance against those net deferred tax assets. Adjustments to the valuation allowance increase or decrease the Company’s income tax provision or benefit. As of

December 31, 2018,

the Company had

net deferred tax assets primarily due to valuation allowances recorded to account for the consecutive quarters with losses before taxes.

Recent changes:

December 22, 2017,

the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act, which is generally effective for tax years beginning on

January 1, 2018,

makes broad and complex changes to the U.S. tax code, including, but

not

limited to, (

) reducing the U.S. federal corporate tax rate from

percent to

percent; (

) eliminating the corporate alternative minimum tax (AMT); (

) bonus depreciation that will allow for full expensing of qualified property; (

) creating a new limitation on deductible interest expense; (

) the repeal of the domestic production activity deduction; (

) the creation of the base erosion anti-abuse tax (BEAT), a new minimum tax; (

) a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries and imposing a

one

-time repatriation tax on deemed repatriated earnings and profits of U.S.-owned foreign subsidiaries (the Transition Tax); (

) a new provision designed to tax global intangible low-taxed income (GILTI), which allows for the possibility of using foreign tax credits (FTCs) and a deduction of up to

percent to offset the income tax liability (subject to some limitations); and (

) changing rules related to uses and limitation of net operating loss carryforwards created in tax years beginning after

December 31, 2017.

Shortly after enactment, the Securities and Exchange Commission issued Staff Accounting Bulletin

No.

118

("SAB

118"

) which provided U.S. GAAP guidance on the accounting for the Tax Act's impact at

December 31, 2017.

A reporting entity

may

recognize provisional amounts, where the necessary information is

not

available, prepared or analyzed (including computations) in reasonable detail or where additional guidance is needed from the taxing authority to determine the appropriate application of the Act. A reporting entity's provisional impact analysis

may

be adjusted within the

-month measurement period provided for under SAB

118.

The Transition Tax is based on the Company's post-

1986

earnings and profits (E&P) of U.S.-owned foreign subsidiaries for which the Company had previously deferred U.S. income taxes. Due to the aggregate loss position of these subsidiaries, the Company estimates that the Transition Tax will

not

result in additional U.S. tax.

The reduction in the corporate tax rate to

percent due to the Tax Act became effective on

January 1, 2018.

Consequently, the Company has recorded a decrease related to the net deferred tax assets of approximately

$3.3

million with a corresponding net adjustment to deferred income tax expense of approximately

$3.3

million for the year ended

December 31, 2017.

The impact of the Tax Act

may

differ from amounts currently recorded, possibly materially, during the

-month measurement period due to, among other things, further refinement of the Company's calculations, changes in interpretations and assumptions the Company has made, guidance that

may

be issued and actions the Company

may

take as a result of the Tax Act.

The Company follows the provisions contained in ASC Topic

740,

Income Taxes.

The Company recognizes the tax benefit from an uncertain tax position only if it is at least more likely than

not

that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position.

Earnings Per Share

– The following table sets forth the computation of basic and diluted loss per common share:

	Year Ended December 31,
	2018			2017
Numerator:
Net loss	$	(16,687	)	$	(14,172	)
Denominator:
Basic weighted average shares		8,942,629			8,576,588
Dilutive common stock equivalents using treasury stock method		-			-
Diluted weighted average shares		8,942,629			8,576,588

Basic loss per common share:	$	(1.87	)	$	(1.65	)
Diluted loss per common share:	$	(1.87	)	$	(1.65	)

Weighted average options outstanding		713,331			815,870
Anti-dilutive options not included in the computation		713,331			815,870

Share-Based Payment

– We estimate the fair value of stock options using the Black-Scholes option-pricing model, which requires certain estimates, including an expected forfeiture rate and expected term of options granted. We also make decisions regarding the method of calculating expected volatilities and the risk-free interest rate used in the option-pricing model. The resulting calculated fair value of stock options is recognized as compensation expense over the requisite service period, which is generally the vesting period. When there are changes to the assumptions used in the option-pricing model, including fluctuations in the market price of our common stock, there will be variations in the calculated fair value of our future stock option awards, which results in variation in the compensation cost recognized.

Recent Accounting Pronouncements -

February 2016,

the FASB issued ASU

No.

2016

02,

Leases (Topic

842

) to bring transparency to lessee balance sheets. The ASU will require organizations that lease assets (lessees) to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than

months. The standard will apply to both types of leases-capital (or finance) leases and operating leases. Previously, GAAP has required only capital leases to be recognized on lessee balance sheets. The standard is effective for fiscal years beginning after

December 15, 2018

and interim periods within fiscal years beginning after

December 15, 2018.

Early application will be permitted for all organizations. The original guidance required application on a modified retrospective basis with the earliest period presented. In

August 2018,

the FASB issued ASU

2018

11,

Targeted Improvements to ASC

842,

which includes an option to

not

restate comparative periods in transition and elect to use the effective date of ASC

842,

Leases, as the date of initial application of transition. Based on the effective date, this guidance will apply and the Company will adopt this ASU beginning on

January 1, 2019

and plan to elect the transition option provided under ASU

2018

11.

The Company expects this standard will have a material effect on its consolidated balance sheets with the recognition of new right of use assets and lease liabilities for all operating leases, as these leases typically have a non-cancelable lease term of greater than

one

year.

August 2016,

the FASB issued ASU

No.

2016

15,

Classification of Certain Cash Receipts and Cash Payments, which addresses

eight

specific cash flow issues with the objective of reducing the existing diversity in practice. ASU

2016

became effective for the Company on

January 1, 2018.

ASU

2016

had

material impact on our consolidated financial statements.

May 2017,

the FASB issued ASU

No.

2017

09,

Compensation—Stock Compensation (Topic

718

): Scope of Modification Accounting. The new guidance provides clarity and reduces both (

) diversity in practice and (

) cost and complexity when applying the guidance in Topic

718,

Compensation—Stock Compensation, to a change to the terms or conditions of a share-based payment award. The accounting standard update became effective for The Company beginning

January 1, 2018.

ASU

2017

did

not

have any material impact on our consolidated financial statements.

Note 2 - Marketable Securities

12 Months Ended

Dec. 31, 2018

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Marketable Securities

The Company has classified its marketable securities as available-for-sale securities. These securities are carried at estimated fair value with unrealized holding gains and losses included in accumulated other comprehensive income(loss) in shareholders’ equity until realized. Gains and losses on marketable security transactions are reported on the specific-identification method. Dividend and interest income are recognized when earned.

The amortized cost, gross unrealized holding gains, gross unrealized holding losses, and fair value for available-for-sale securities by major security type and class of security at

December 31, 2018

and

2017

were as follows:

	Amortized cost		Gross unrealized holding gains		Gross unrealized holding losses			Estimated fair value
December 31, 201 8
Available-for-sale securities:
Corporate bonds and notes	$	2,911	$	1	$	(31	)	$	2,881
Municipal bonds		1,849		—		(15	)		1,834
Total available-for-sale securities	$	4,760	$	1	$	(46	)	$	4,715

December 31, 201 7
Available-for-sale securities:
Corporate bonds and notes	$	8,458	$	19	$	(49	)	$	8,428
Municipal bonds		4,637		1		(28	)		4,610
Total available-for-sale securities	$	13,095	$	20	$	(77	)	$	13,038

Maturities of marketable securities classified as available-for-sale securities were as follows at

December 31, 2018:

	Amortized		Estimated
	cost		fair value

Due within one year	$	955	$	951
Due after one year through five years		3,805		3,764
Total available-for-sale securities	$	4,760	$	4,715

Debt securities in an unrealized loss position as of

December 31, 2018

were

not

deemed impaired at acquisition and subsequent declines in fair value are

not

deemed attributed to declines in credit quality. Management believes that it is more likely than

not

that the securities will receive a full recovery of par value. The available-for-sale marketable securities in a gross unrealized loss position as of

December 31, 2018

are summarized as follows:

	Less than 12 months				More than 12 months				Total
	Estimated fair value		Gross unrealized holding losses		Estimated fair value		Gross unrealized holding losses		Estimated fair value		Gross unrealized holding losses
As of December 31, 201 8
Corporate bonds and notes	$	—	$	—	$	2,881	$	31	$	2,881	$	31
Municipal bonds		—		—		1,834		15		1,834		15
	$	—	$	—	$	4,715	$	46	$	4,715	$	46

Note 3 - Business Combinations, Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2018

Business Combinations, Goodwill and Intangibles Disclosure [Text Block]

Business Combinations, Goodwill and Intangible Assets

Goodwill impairment

There was a decrease in goodwill of

$12,724

during

2017

due to the impairment of goodwill. During the

third

quarter ended

September 30, 2017,

there was a decrease in the Company’s market capitalization which was determined to be a triggering event for potential goodwill impairment. Accordingly, the Company performed a goodwill impairment analysis. The Company utilized the market capitalization to estimate the fair value. Our total stockholders’ equity exceeded the estimated fair value. The failure of step

one

of the goodwill impairment test triggered a step

two

impairment test. As a result of step

two

of the impairment test, the Company determined the implied fair value of goodwill and concluded that the carrying value of goodwill exceeded its implied fair value as of

September 30, 2017.

Accordingly, an impairment charge of

$12,724,

which represents a full impairment charge, was recognized in the

third

quarter ended

September 30, 2017.

There were

such impairment charges during the year ended

December 31, 2018.

Intangible Assets

Intangible assets as of

December 31, 2018,

and

2017

consisted of the following:

	Estimated useful lives				As of December 31,
	(in years)				201 8			201 7
Tradename		5	to	7	$	555		$	555
Patents and technological know-how			10			13,377			8,578
Proprietary software		3	to	15		2,981			2,981
Other		3	to	5		323			323
Total intangible assets, gross						17,236			12,437
Accumulated amortization						(6,987	)		(5,894	)
Total intangible assets, net					$	10,249		$	6,543

Intangible assets includes capitalized legal expenses, net of amortization of

$6,627

million related to our defense of patents from infringement by our competitors. Legal expenses have been capitalized upon satisfaction of

two

conditions: (a) a determination being made that a successful defense of this litigation is probable, and (b) that the monetary benefits arising out of such successful defense will be in excess of the costs for the defense. Please refer to

Note

- Commitments and Contingencies

for additional information.

During the years ended

December 31, 2018

and

2017,

amortization of these intangible assets were

$1,093

and

$932

respectively.

The estimated future amortization expense of intangible assets is as follows:

Years ending December 31,
2019	$	1,226
2020		1,048
2021		1,048
2022		1,048
2023		866
Thereafter		5,013
Total	$	10,249

Note 6 - Leases and Deferred Rent

12 Months Ended

Dec. 31, 2018

Leases of Lessee Disclosure [Text Block]

Leases and Deferred Rent

Rent expense is recognized on a straight-line basis over the period of the lease taking into account future rent escalation and holiday periods. Rent expense was

$1,053

and

$999,

including amortization of deferred rent of $(

) and

$44

for the years ended

December 31, 2018

and

2017,

respectively.

We occupy a

5,000

square-foot facility in Gainesville, Florida under the terms of an operating lease that expires in

February 2021

with the possibility of renewing the lease for

more years. The Gainesville facility was used primarily to support our research and development activities.

We currently occupy a

21,443

square-foot facility in Salt Lake City, Utah under the terms of an operating lease expiring in

March

2024,

with an option to extend for additional

five

years. The facility supports our principal administrative, sales, marketing, customer support, and research and product development activities.

We occupy a

10,700

square-foot warehouse in Shenzhen, China under the terms of an operating lease expiring in

September 2019,

which serves as manufacturing support center for Asia.

We occupy a

7,070

square-foot facility in Austin, Texas - under the terms of an operating lease expiring in

October 2019.

This facility support our sales, marketing, customer support, and research and development activities.

We occupy a

3,068

square-foot facility in Zaragoza, Spain under the terms of an operating lease expiring in

March 2020.

This office supports our research and development and customer support activities

We occupy a

6,175

square-foot facility in Chennai, India - under the terms of an operating lease expiring in

August 2021.

This facility support our administrative, marketing, customer support, and research and product development activities.

We occupy a

40,000

square-foot warehouse in Salt Lake City, Utah under the terms of an operating lease expiring in

April 2025,

which serves as our primary inventory fulfillment and repair center.

Future minimum lease payments under non-cancellable operating leases with initial terms of

one

year or more are as follows:

Years ending December 31,
2019	$	809
2020		700
2021		646
2022		595
2023		606
Thereafter		375
Total minimum lease payments	$	3,731

Note 8 - Commitments and Contingencies	12 Months Ended
Note 8 - Commitments and Contingencies	Dec. 31, 2018
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	8. Commitments and Contingencies We establish contingent liabilities when a particular contingency is both probable and estimable. The Company is not aware of any pending claims or assessments, other than as described below, which may have a material adverse impact on the Company’s financial position or results of operations. Outsource Manufacturers. We have manufacturing agreements with electronics manufacturing service (“EMS”) providers related to the outsourced manufacturing of our products. Certain manufacturing agreements establish annual volume commitments. We are also obligated to repurchase Company-forecasted but unused materials. The Company has non-cancellable, non-returnable, and long-lead time commitments with its EMS providers and certain suppliers for inventory components that will be used in production. The Company’s purchase commitments under such agreements is approximately $1,247 as of December 31, 2018. Uncertain Tax Positions. As further discussed in Note 12, we had $679 of uncertain tax positions as of December 31, 2018. Due to the inherent uncertainty of the underlying tax positions, it is not possible to forecast the payment of this liability to any particular year. Legal Proceedings. Intellectual Property Litigation The Company is involved in patent infringement against Shure Inc. ("Shure") in the matter styled Shure Inc. v. ClearOne, Inc. , 1:17 -cv- 03078, which is pending in the United States District Court for the Northern District of Illinois, Eastern Division, before the Honorable Edmond E. Chang. Shure initiated this litigation on April 24, 2017. Shure’s initial complaint sought a declaratory judgment for non-infringement and invalidity of the Company’s U.S. Patent No. 9,635,186 ( "’186 Patent") and Patent No. 9,264,553 ( "’553 Patent"). In early 2018, Shure added a claim that the ‘186 Patent is unenforceable. The Court dismissed Shure’s request for declaratory judgment relating to the ’553 Patent, which at the time in 2017, had not been asserted by the Company against any defendant and had been submitted to the USPTO for reissue. The Company has filed counterclaims against Shure for willful infringement of the Company’s ’186 Patent and the Company’s U.S. Patent No. 9,813,806 ( "’806 Patent"). On July 14, 2017, Shure filed a petition with Patent Trial and Appeals Board ("PTAB") for inter partes review against the ‘553 Patent. On January 29, 2018, PTAB decided to institute inter partes review. On August 6, 2017, the Company filed a motion seeking a preliminary injunction to enjoin the Shure from continuing to infringe on the Company’s '186 Patent. On March 16, 2018 the Court denied the Company’s motion for preliminary injunction. On February 6, 2019, the Company filed a motion for reconsideration of the Court’s order denying a preliminary injunction against Shure to enjoin infringement of the ’186 Patent. That motion is still pending. In November 2018, the Court heard argument on the Company’s motion seeking a preliminary injunction to enjoin Shure from continuing to infringe the Company’s ’806 Patent. The Court indicated during a status hearing on March 15, 2019 that it will issue a decision by mid- April 2019. That motion is still pending. On January 24, 2019, PTAB issued a final written decision confirming the patentability of all claims of the ‘553 Patent. The '553 Patent covers aspects of ClearOne’s revolutionary innovations in beamforming microphone arrays (BMAs). Shure filed a request for a rehearing, which the PTAB denied on March 25, 2019. Shure filed a notice of appeal of the PTAB’s decision on April 8, 2019. On April 10, 2019, the Company filed a new lawsuit against Shure in the United States District Court for the Northern District of Illinois, Eastern Division, styled ClearOne, Inc. v. Shure Inc. , 1:19 -cv- 02421. In this lawsuit, the Company asserts claims against Shure for infringement of the Company’s ’553 Patent and for trade secret misappropriation. The Company intends to continue to vigorously enforce and defend its intellectual property rights in the Illinois Action and the PTAB proceedings. During the twelve months ended December 31, 2018 and 2017, the Company recorded $0 and $1,111, respectively, of pretax gross expenses related to this intellectual property litigation to prevent infringement of the Company’s patents. In addition, the Company also capitalized $4,698 and $2,289 of litigation expenses related to this matter during the twelve months ended December 31, 2018 and 2017, respectively. Former Employee Litigation OSHA Complaint : On or about October 24, 2016, the Company received written notice from the United States Department of Labor, Occupational Health and Safety Administration (“OSHA”) that a complaint had been filed against it by a former employee. Among other things, the former employee’s OSHA complaint alleged harassment, retaliation, and violations of 18 U.S.C.A. Section 1514A, et seq. (the “Sarbanes-Oxley Act”), arising out of the termination of his employment with the Company on or about August 17, 2016 ( the “OSHA Complaint”). By letter dated March 2, 2017, the Company received notice that the same former employee who initiated the OSHA Complaint filed a complaint with the Utah Labor Commission, Anti-Discrimination & Labor Division (“UALD”), alleging that the employee's termination was discriminatory based upon a disability or, in the alternative, retaliatory for substantially the same reasons alleged in the OSHA Complaint. The charge was also forwarded to the United States Equal Employment and Opportunity Commission (“EEOC”) and was also recognized as a charge under the EEOC's federal jurisdiction. Following negotiations between the parties, the parties executed a settlement agreement on December 7, 2017 ( “the Agreement”) with respect to the OSHA Complaint. Per the terms of the Agreement, the Company's signing of the Agreement in no way constitutes an admission of a violation of any law or regulation enforced by OSHA. Around the same time in December 2017, the parties executed a side settlement agreement by which the former employee acknowledged that he does not believe that the Company engaged in activities which would be construed as violations of securities-related laws and agreed to withdraw his charge against the Company from the UALD and the EEOC. The charge was effectively withdrawn on December 6, 2017. During the twelve months ended December 31, 2018 and 2017, the Company recorded $0 and $152, respectively, of pretax gross expenses and settlement costs related to the defense of the OSHA Complaint and review of the allegations underlying the former employee’s OSHA complaint. The amount recorded in 2017 is net of recoveries from the insurance company towards this matter. The Company maintains an Employment Practices Liability policy with Chubb/Federal Insurance Company (the “EPL Policy”). Based on the allegations contained in the OSHA Complaint, the Company has tendered a claim for coverage under the EPL Policy. In addition, the Company is also involved from time to time in various claims and legal proceedings which arise in the normal course of our business. Such matters are subject to many uncertainties and outcomes that are not predictable. However, based on the information available to us, we do not believe any such other proceedings will have a material adverse effect on our business, results of operations, financial position, or liquidity. Conclusion We believe there are no other items that will have a material adverse impact on the Company’s financial position or results of operations. Legal proceedings are subject to all of the risks and uncertainties of legal proceedings and there can be no assurance as to the probable result of any legal proceedings. The Company believes it has adequately accrued for the aforementioned contingent liabilities. If adverse outcomes were to occur, our financial position, results of operations and cash flows could be negatively affected materially for the period in which the adverse outcomes are known.

Note 9 - Share-based Payments

12 Months Ended

Dec. 31, 2018

Shareholders' Equity and Share-based Payments [Text Block]

Share-Based Payments

Employee Stock Option Plans

The Company’s share-based incentive plan offering stock options is primarily through

2007

Equity Incentive Plan (the

“2007

Plan”). Under this plan,

one

new share is issued for each stock option exercised. The plan is described below.

The

2007

Plan was restated and approved by the shareholders on

December 12, 2016.

Provisions of the restated

2007

Plan include the granting of up to

2,000,000

incentive and non-qualified stock options, stock appreciation rights, restricted stock and restricted stock units. Options

may

be granted to employees, officers, non-employee directors and other service providers and

may

be granted upon such terms as the Compensation Committee of the Board of Directors determines in their sole discretion.

All vesting schedules for options granted are based on

-year vesting schedules, with either

one

third

one

fourth

vesting on the

first

anniversary and the remaining options vesting ratably over the remainder of the vesting term. Generally, directors and officers have

-year vesting schedules and all other employees have

-year vesting schedules. Additionally, in the event of a change in control or the occurrence of a corporate transaction, the Company’s Board of Directors has the authority to elect that all unvested options shall vest and become exercisable immediately prior to the event or closing of the transaction. All options outstanding as of

December 31, 2018

had contractual lives of

ten

years.

As of

December 31, 2018,

there were

624,256

options outstanding under the

2007

Plan. As of

December 31, 2018,

the

2007

Plan had

870,838

authorized unissued options, while there were

options remaining that could be granted under the

1998

Plan.

The Company uses judgment in determining the fair value of the share-based payments on the date of grant using an option-pricing model with assumptions regarding a number of highly complex and subjective variables. These variables include, but are

not

limited to, the risk-free interest rate of the awards, the expected life of the awards, the expected volatility over the term of the awards, and the expected dividends of the awards. The Company uses the Black-Scholes option pricing model to determine the fair value of share-based payments granted under the guidelines of ASC Topic

718.

In applying the Black-Scholes methodology to the options granted, the Company used the following assumptions:

	Year ended December 31,
	2018		2017
Risk-free interest rate, average		—		2.21
Expected option life, average (in years)		—		7.9
Expected price volatility, average		—		40.71
Expected dividend yield		—		2.83

The risk-free interest rate is determined using the U.S. Treasury rate in effect as of the date of the grant, based on the expected life of the stock option. The expected life of the stock option is determined using historical data.

The expected price volatility is determined using a weighted average of daily historical volatility of the Company’s stock price over the corresponding expected option life.

Under guidelines of ASC Topic

718,

the Company recognizes the associated compensation cost for only those awards expected to vest on a straight-line basis over the underlying requisite service period. The Company estimated the forfeiture rates based on its historical experience and expectations about future forfeitures.

The following table shows the stock option activity:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
As of December 31, 2016		850,232		$	8.06		5.78	$	3,001
Granted		105,000			9.90
Expired and canceled		(3,144	)		10.29
Forfeited prior to vesting		(8,996	)		11.01
Exercised		(178,662	)		5.90
As of December 31, 2017		764,430		$	8.78		6.48	$	1,038
Granted		—			—
Expired and canceled		(106,108	)		7.56
Forfeited prior to vesting		(34,066	)		10.79
Exercised		—			—
As of December 31, 2018		624,256		$	8.87		5.28	$	—
Vested and Expected to Vest at December 31, 2017		764,430		$	8.78		6.48	$	1,038
Vested at December 31, 2017		529,669		$	7.89		5.50	$	1,033
Vested and Expected to Vest at December 31, 2018		624,256		$	8.87		5.28	$	—
Vested at December 31, 2018		548,045		$	8.62		4.90	$	—

The weighted average per share fair value of options granted during the years ending

December 31, 2018

and

2017

was

and

$3.31

respectively. The total intrinsic value of options exercised during the years ended

December 31, 2018

and

2017

was

and

$646

respectively.

The total pre-tax compensation cost related to stock options recognized during the years ended

December 31, 2018

and

2017

was

$463

and

$665,

respectively. Tax benefit from compensation cost related to stock options during the years ended

December 31, 2018

and

2017

was

$0.

As of

December 31, 2018,

the total compensation cost related to stock options

not

yet recognized and before the effect of any forfeitures was

$262,

which is expected to be recognized over approximately the next

1.17

years on a straight-line basis.

Employee Stock Purchase Plan

During the years ended

December 31, 2018

and

2017,

the Company issued shares to employees under the Company’s

2016

Employee Stock Purchase Plan (the “ESPP”). The ESPP was approved by the Company’s shareholders on

December 12, 2016.

As of

December 31, 2018

and

December 31, 2017,

442,994

and

466,783,

respectively of the originally approved

500,000

shares were available for offerings under the ESPP. Offering periods under the ESPP commence on each

Jan 1

and

July 1,

and continue for a duration of

six

months. The ESPP is available to all employees who do

not

own, or are deemed to own, shares of stock making up an excess of

of the combined voting power of the Company, its parent or subsidiary.

During each offering period, each eligible employee

may

purchase shares under the ESPP after authorizing payroll deductions. Under the ESPP, each employee

may

purchase up to the lesser of

2,500

shares or

$25

of fair market value (based on the established purchase price) of the Company’s stock for each offering period. Unless the employee has previously withdrawn from the offering, his or her accumulated payroll deductions will be used to purchase common stock on the last business day of the period at a price equal to

85%

(or a

15%

discount) of the fair market value of the common stock on the

first

or last day of the offering period, whichever is lower.

Shares purchased and compensation expense associated with Employee Stock Purchase Plans were as follows:

	2018		2017
Shares purchased under ESPP plan		23,789		9,110
Plan compensation expense	$	10	$	13

Stock Repurchase Program and Cash Dividends

March

2017,

the Board of Directors of the Company renewed and extended the repurchase program for up to an additional

$10

million of common stock over the next

twelve

months. In connection with the repurchase extension authorization, the Company was authorized to complete the repurchase through open market transactions or through an accelerated share repurchase program, in each case to be executed at management’s discretion based on business and market conditions, stock price, trading restrictions, acquisition activity and other factors. All the transactions effectuated under this program occurred in open market purchases. This program terminated in

March 2018.

During the

twelve

months ended

December 31, 2017,

we acquired

551,936

shares at an average price of

$9.28

per share under the stock repurchase program authorized by the Board of Directors in

March 2016

and renewed and extended in

March 2017.

Before the program was terminated in

March 2018,

we acquired

17,549

shares at an average price of

$8.39

per share during

2018.

Cash Dividends

February 21, 2018,

the Company declared a cash dividend of

$0.07

per share of ClearOne common stock. The dividend was paid on

March 21, 2018

to shareholders of record as of

March 7, 2018.

June 13, 2018,

the Company announced the suspension of its dividend program.

Issuance of Common Stock

The Company raise additional capital through an oversubscribed subscription rights offering (the "Rights Offering") which closed on

December 4, 2018

and which raised

$9,883

(net of stock issuance costs). In the Rights Offering, we issued

one

subscription right to each of our shareholders for each share of our common stock that they held. Each subscription right entitled the shareholder to purchase

one

share of our common stock at a purchase price of

$1.20

per share. At the closing, we sold

8,306,535

shares of our common stock and returned subscriptions for

754,868

shares that were oversubscribed after allocating oversubscribed shares on a pro-rata basis.

Note 11 - Fair Value Measurements

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Text Block]

11.

Fair Value Measurements

The fair value of the Company’s financial instruments reflects the amounts that the Company estimates it will receive in connection with the sale of an asset or pay in connection with the transfer of a liability in an orderly transaction between market participants at the measurement date (exit price). The fair value hierarchy prioritizes the use of inputs used in valuation techniques into the following

three

levels:

Level

- Quoted prices in active markets for identical assets and liabilities.

Level

- Observable inputs other than quoted prices in active markets for identical assets and liabilities; quoted prices in markets that are

not

active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. This category generally includes U.S. Government and agency securities; municipal securities; mutual funds and securities sold and

not

yet settled.

Level

- Unobservable inputs.

The substantial majority of the Company’s financial instruments are valued using quoted prices in active markets or based on other observable inputs. The following tables set forth the fair value of the financial instruments re-measured by the Company as of

December 31, 2018

and

2017:

	Level 1		Level 2		Level 3		Total
December 31, 2018
Corporate bonds and notes	$	—	$	2,881	$	—	$	2,881
Municipal bonds		—		1,834		—		1,834
Total	$	—	$	4,715	$	—	$	4,715
December 31, 2017
Corporate bonds and notes	$	—	$	8,428	$	—	$	8,428
Municipal bonds		—		4,610		—		4,610
Total	$	—	$	13,038	$	—	$	13,038

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Note 12 - Income Taxes

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Text Block]

12.

Income Taxes

Consolidated income before taxes for domestic and foreign operations consisted of the following:

	Year ended December 31,
	2018			2017
Domestic	$	(7,751	)	$	(12,630	)
Foreign		(2,496	)		(3,263	)
Total	$	(10,247	)	$	(15,893	)

The Company’s (provision) for income taxes consisted of the following:

	Year ended December 31,
	2018			2017
Current:
Federal	$	(71	)	$	577
State		37			(66	)
Foreign		117			(682	)
Total current		83			(171	)
Deferred:
Federal		2,233			1,497
State		667			480
Foreign		495			748
Total		3,395			2,725
Change in valuation allowance		(9,918	)		(833	)
Total deferred		(6,523	)		1,892
Benefit/(provision) for income taxes	$	(6,440	)	$	1,721

The income tax benefit (provision) differs from that computed at the federal statutory corporate income tax rate as follows:

	Year ended December 31,
	2018			2017
Tax benefit (provision) at federal statutory rate	$	2,152		$	5,403
State income tax benefit (provision), net of federal benefit		413			439
Research and development tax credits		250			411
Subpart F inclusion		—			(370	)
Foreign earnings or losses taxed at different rates		12			(540	)
Tax rate change		23			(3,161	)
Other		628			372
Change in valuation allowance		(9,918	)		(833	)
Tax benefit (provision)	$	(6,440	)	$	1,721

The tax effects of significant temporary differences representing net deferred tax assets and liabilities consisted of the following:

	2018			2017
Deferred revenue	$	50		$	738
Basis difference in intangible assets		3,283			3,403
Inventory reserve		2,235			2,089
Net operating loss carryforwards		4,067			1,627
Research and development tax credits		794			163
Accrued expenses		143			75
Stock-based compensation		362			327
Allowance for sales returns and doubtful accounts		160			119
Difference in property and equipment basis		(185	)		(212	)
Other		551			438
Total net deferred income tax asset		11,460			8,767
Less: Valuation allowance		(11,460	)		(2,236	)
Net deferred income tax asset (liability)	$	—		$	6,531

The Company has

not

provided for foreign withholding taxes on undistributed earnings of its non-U.S. subsidiaries since these earnings are intended to be reinvested indefinitely, in accordance with guidelines contained in ASC Topic

740,

Accounting for Income Taxes

. It is

not

practical to estimate the amount of additional taxes that might be payable on such undistributed earnings.

The Company routinely evaluates the likelihood of realizing the benefit of its deferred tax assets and

may

record a valuation allowance if, based on all available evidence, it determines that it is more likely than

not

some portion of the tax benefit will

not

be realized. As of

December 31, 2018,

the Company had an aggregate of approximately

$11.5

million in deferred tax assets primarily related to intangible assets, net operating losses, tax credit carryforwards, and inventory basis differences. On a quarterly basis, the Company tests the value of deferred tax assets for impairment at the taxpaying-component level within each tax jurisdiction. Significant judgment and estimates are required in determining whether valuation allowances should be established as well as the amount of such allowances. When making such determination, consideration is given to, among other things, the following:

●

sufficient taxable income within the allowed carryback or carryforward periods;

●

future reversals of existing taxable temporary differences, including any tax planning strategies that could be utilized;

●

nature or character (e.g., ordinary vs. capital) of the deferred tax assets and liabilities; and

●

future taxable income exclusive of reversing temporary differences and carryforwards.

Based on the foregoing criteria, the Company determined that it

longer meets the “more likely than

not”

threshold that net operating losses, tax credits and other deferred tax assets will be realized. Accordingly, the Company recorded a full valuation allowance at

September 30, 2018,

and continues to be in a full valuation allowance position at

December 31, 2018.

The Company has federal and state net operating loss (“NOL”) carryforwards of approximately

8.4

million (pre-tax), and Spain NOL carryforwards of approximately

$7.5

million. The majority of the federal NOL carryforward and the Spain NOL carryforward do

not

expire. The state NOL carryforwards expire over various periods.

Effective

July 1, 2007,

the Company adopted the accounting standards related to uncertain tax positions. This standard requires that tax positions be assessed using a

two

-step process. A tax position is recognized if it meets a “more likely than

not”

threshold, and is measured at the largest amount of benefit that is greater than

percent likely of being realized. Uncertain tax positions must be reviewed at each balance sheet date. Liabilities recorded as a result of this analysis must generally be recorded separately from any current or deferred income tax accounts.

The total amount of unrecognized tax benefits at

December 31, 2018

and

2017,

that would favorably impact our effective tax rate if recognized was

$679

and

$647,

respectively. As of

December 31, 2018

and

2017,

we accrued

$15

and

$14,

respectively, in interest and penalties related to unrecognized tax benefits. We account for interest expense and penalties for unrecognized tax benefits as part of our income tax provision.

Although we believe our estimates are reasonable, we can make

assurance that the final tax outcome of these matters will

not

be different from that which we have reflected in our historical income tax provisions and accruals. Such difference could have a material impact on our income tax provision and operating results in the period in which we make such determination.

A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions is as follows:

	Year ended December 31,
	2018			2017
Balance - beginning of year	$	652		$	1,189
Additions based on tax positions related to the current year		58			67
Additions for tax positions of prior years		118			520
Reductions for tax positions of prior years		(53	)		-
Settlements		-			(165	)
Lapse in statutes of limitations		(96	)		(959	)
Uncertain tax positions, ending balance	$	679		$	652

The Company’s U.S. federal income tax returns for

2015

through

2018

are subject to examination. The Company also files in various state and foreign jurisdictions. With few exceptions, the Company is

longer subject to federal, state, or non-U.S. income tax examinations by tax authorities for years prior to

2015.

The Company completed its audit by the Internal Revenue Service (“IRS”) for its

2012

and

2013

tax returns in

2017.

As a result of the audit by the IRS, there were

material adjustments made to the Company’s tax return.

The Inland Revenue Department of Hong Kong, a Special Administrative Region (the “IRD”), commenced an examination of the Company’s Hong Kong profits tax returns for

2009

through

2011

in the

fourth

quarter of

2012,

which was completed subsequent to

December 31, 2017.

As a result of the audit, there were

material changes to the Company’s financial position. During the next

twelve

months, it is reasonably possible that the amount of the Company’s unrecognized income tax benefits could change significantly. These changes could be the result of our ongoing tax audits or the settlement of outstanding audit issues. However, due to the issues being examined, at the current time, an estimate of the range of reasonably possible outcomes cannot be made, beyond amounts currently accrued.

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Fiscal Period, Policy [Policy Text Block]

Fiscal Year

– This report on Form

-K includes consolidated balance sheets for the years ended

December 31, 2018

and

2017

and the related consolidated statements of operations and comprehensive loss, shareholders' equity, and cash flows for each of the years

2018

and

2017.

Consolidation, Policy [Policy Text Block]

Consolidation

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Currency Translation

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration Risk

– We depend on an outsourced manufacturing strategy for our products. We outsource the manufacture of all of our products to

third

may

second

source of manufacturing for a portion of our products.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash Equivalents

– The Company considers all highly-liquid investments with a maturity of

three

months or less, when purchased, to be cash equivalents. The Company places its temporary cash investments with high-quality financial institutions. At times, such investments

may

be in excess of the Federal Deposit Insurance Corporation insurance limits.

Marketable Securities, Policy [Policy Text Block]

Marketable Securities -

not

other-than-temporary impairments recognized during the years ended

December 31, 2018

and

2017.

Trade and Other Accounts Receivable, Policy [Policy Text Block]

Accounts Receivable

– Accounts receivable are recorded at the invoiced amount. Generally, credit is granted to customers on a short-term basis without requiring collateral, and as such, these accounts receivable, do

not

bear interest, although a finance charge

may

first

not

probable. If the assumptions that are used to determine the allowance for doubtful accounts change, the Company

may

have to provide for a greater level of expense in future periods or reverse amounts provided in prior periods.

The Company’s allowance for doubtful accounts activity for the years ended

December 31, 2018

and

2017

is as follows:

	Year Ended December 31,
	201 8		201 7
Balance at beginning of the year	$	472	$	187
Allowance increase (decrease)		159		287
Write offs, net of recoveries		-		(2	)
Balance at end of the year	$	631	$	472

Inventory, Policy [Policy Text Block]

Inventories

– Inventories are valued at the lower of cost or market, with cost computed on a

first

-in,

first

not

in excess of estimated realizable value. Consideration is given to obsolescence, excessive levels, deterioration, direct selling expenses, and other factors in evaluating net realizable value.

Distributor channel inventories include products that have been delivered to customers for which revenue recognition criteria have

not

been met.

$184

and

$76,

as of

December 31, 2018

and

2017,

respectively.

The inventory consists of current inventory of

$13,228

and long-term inventory of

$8,953.

Long term inventory represents inventory held in excess of our current (next

months) requirements based on our recent sales and forecasted level of sales.

Property, Plant and Equipment, Policy [Policy Text Block]

Property and Equipment

two

ten

Goodwill and Intangible Assets, Policy [Policy Text Block]

Goodwill and Intangible Assets –

three

ten

not

amortized.

Impairment of Goodwill -

350,

Intangibles – Goodwill and Other

the Company performs impairment tests of goodwill on an annual basis in the

fourth

fiscal quarter, or sooner if a triggering event occurs suggesting possible impairment of the values of these assets.

We assess the recoverability of our

one

reporting unit’s carrying value of goodwill by making a qualitative or quantitative assessment. If we begin with a qualitative assessment and are able to support the conclusion that it is

not

more likely than

not

that the fair value of the Company is less than its carrying value, we are

not

required to perform the

two

-step impairment test. Otherwise, using the two−step approach is required (See

Note

– Business Combinations, Goodwill and Intangibles

). ClearOne and all of its subsidiaries are considered as

one

reporting unit for this purpose.

In the

first

not

impaired and

further review is required. However, if the fair value of the reporting unit is less than its carrying value, we perform the

second

step of the goodwill impairment test to determine the amount of the impairment charge, if any.

The

second

During the

third

quarter ended

September 30, 2017,

we recorded

$12,724,

or the entire value of goodwill, as an impairment charge. There were

such impairment charges during the year ended

December 31, 2018.

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Impairment of Long-Lived Assets -

may

not

During the

twelve

months ended

December 31, 2017

we recorded

$769

as a charge for impairment of an intangible asset consisting of customer relationships.

Change in Accounting Policy [Policy Text Block]

Adoption of New Revenue Standard:

January

2018,

as required, the Company adopted ASU

No.

2014

- Revenue from Contracts with Customers (Topic

606

) (“ASU

2014

09”

), ASU

No.

2015

- Revenue from Contracts with Customers (Topic

606

): Deferral of the Effective Date (“ASU

2015

14”

), ASU

No.

2016

- Revenue from Contracts with Customers (Topic

606

): Principal versus Agent Considerations (“ASU

2016

08”

), ASU

No.

2016

- Revenue from Contracts with Customers (Topic

606

): Identifying Performance Obligations and Licensing (“ASU

2016

10”

), ASU

No.

2016

- Revenue from Contracts with Customers (Topic

606

): Narrow-Scope Improvements and Practical Expedients (“ASU

2016

12”

) and ASU

No.

2016

- Technical Corrections and Improvements to Topic

606,

Revenue from Contracts with Customers” (“ASU

2016

20”

) (collectively “the New Revenue Standard”). To conform to the New Revenue Standard, the Company modified its revenue recognition policy as described further below.

Change in Accounting Policy:

January

2018,

the Company adopted the New Revenue Standard using the modified retrospective method, applying the guidance to all open contracts and recognized an adjustment to increase retained earnings by

$2,783,

reduce deferred product revenue by

$4,338

and reduce distributor channel inventories by

$1,555

as of that date. The comparative financial information has

not

been restated and continues to be presented under the accounting standards in effect for the respective periods. The Company applied the practical expedient and has

not

disclosed the revenue allocated to future shipments of partially completed contracts.

Prior to our change in accounting policy, revenue from product sales to distributors was

not

reporting the channel inventory, the revenue and associated cost of goods sold were deferred until we received payment for the product sales made to such distributors or channel partners.

12 months ended

December 31, 2018,

revenue decreased by

$1,252

due to the impact of the adoption of the New Revenue Standard.

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition Policy:

five

-step approach in determining the amount and timing of revenue to be recognized: (

) identifying the contract with a customer, (

) identifying the performance obligations in the contract, (

) determining the transaction price, (

) allocating the transaction price to the performance obligations in the contract and (

) recognizing revenue when the performance obligation is satisfied. Substantially all of the Company’s revenue is recognized at the time control of the products transfers to the customer.

Sales agreements with customers are renewable periodically and contain terms and conditions with respect to payment, delivery, warranty and supply, but typically do

not

days of invoicing.

twelve

months ended

December 31, 2018

for equipment sales was

$27,369,

and for software, licenses, etc. was

$787.

Frequently, the Company receives orders with multiple delivery dates that

may

days of invoicing and dealers pay within

days of invoicing. As scheduled delivery dates are within

one

year, revenue allocated to future shipments of partially completed contracts are

not

disclosed.

The details of deferred revenue and associated cost of goods sold and gross profit are as follows:

	As of December 31,
	2018		2017
Deferred revenue	$	283	$	4,635
Deferred cost of goods sold		-		1,555
Deferred gross profit	$	283	$	3,080

The Company provides, at its discretion, advance replacement units to end-users on defective units of certain products under warranty. Since the purpose of these units is

not

The following table disaggregates the Company’s revenue into primary product groups:

	Twelve months ended December 31, 2018		Twelve months ended December 31, 2017
Audio Conferencing	$	13,946	$	21,078
Microphones		9,012		13,430
Video products		5,198		7,296
	$	28,156	$	41,804

The following table disaggregates the Company’s revenue into major regions:

	Twelve months ended December 31, 2018		Twelve months ended December 31, 2017
North and South America	$	16,534	$	26,310
Asia (including Middle East) and Australia		7,924		11,087
Europe and Africa		3,698		4,407
	$	28,156	$	41,804

Standard Product Warranty, Policy [Policy Text Block]

Warranty Costs

The details of changes in the Company’s warranty accrual are as follows:

	Year Ended December 31,
	2018			2017
Balance at the beginning of year	$	245		$	246
Accruals/additions		288			399
Usage/claims		(339	)		(400	)
Balance at end of year	$	194		$	245

Advertising Cost, Policy, Expensed Advertising Cost [Policy Text Block]

Advertising

– The Company expenses advertising costs as incurred. Advertising costs consist of trade shows, magazine advertisements, and other forms of media. Advertising expenses for the years ended

December 31, 2018

and

2017

totaled

$1,037

and

$1,079,

respectively, and are included in sales and marketing on the consolidated statements of operations and comprehensive loss.

Research and Development Expense, Policy [Policy Text Block]

Research and Product Development Costs

– The Company expenses research and product development costs as incurred.

● sufficient taxable income within the allowed carryback or carryforward periods;

● future reversals of existing taxable temporary differences, including any tax planning strategies that could be utilized;

● nature or character (e.g., ordinary vs. capital) of the deferred tax assets and liabilities; and

● future taxable income exclusive of reversing temporary differences and carryforwards.

Income Tax, Policy [Policy Text Block]

Income Taxes

not

that some or all of the deferred tax assets

may

not

2018,

as a result of negative evidence, principally

three

years of cumulative pre-tax operating losses, we concluded that it was more likely than

not

that net operating losses, tax credits and other deferred tax assets were

not

December 31, 2018,

the Company had

net deferred tax assets primarily due to valuation allowances recorded to account for the consecutive quarters with losses before taxes.

Recent changes:

December 22, 2017,

the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act, which is generally effective for tax years beginning on

January 1, 2018,

makes broad and complex changes to the U.S. tax code, including, but

not

limited to, (

) reducing the U.S. federal corporate tax rate from

percent to

percent; (

) eliminating the corporate alternative minimum tax (AMT); (

) bonus depreciation that will allow for full expensing of qualified property; (

) creating a new limitation on deductible interest expense; (

) the repeal of the domestic production activity deduction; (

) the creation of the base erosion anti-abuse tax (BEAT), a new minimum tax; (

) a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries and imposing a

one

-time repatriation tax on deemed repatriated earnings and profits of U.S.-owned foreign subsidiaries (the Transition Tax); (

) a new provision designed to tax global intangible low-taxed income (GILTI), which allows for the possibility of using foreign tax credits (FTCs) and a deduction of up to

percent to offset the income tax liability (subject to some limitations); and (

) changing rules related to uses and limitation of net operating loss carryforwards created in tax years beginning after

December 31, 2017.

Shortly after enactment, the Securities and Exchange Commission issued Staff Accounting Bulletin

No.

118

("SAB

118"

) which provided U.S. GAAP guidance on the accounting for the Tax Act's impact at

December 31, 2017.

A reporting entity

may

recognize provisional amounts, where the necessary information is

not

may

be adjusted within the

-month measurement period provided for under SAB

118.

The Transition Tax is based on the Company's post-

1986

not

result in additional U.S. tax.

The reduction in the corporate tax rate to

percent due to the Tax Act became effective on

January 1, 2018.

Consequently, the Company has recorded a decrease related to the net deferred tax assets of approximately

$3.3

million with a corresponding net adjustment to deferred income tax expense of approximately

$3.3

million for the year ended

December 31, 2017.

The impact of the Tax Act

may

differ from amounts currently recorded, possibly materially, during the

-month measurement period due to, among other things, further refinement of the Company's calculations, changes in interpretations and assumptions the Company has made, guidance that

may

be issued and actions the Company

may

take as a result of the Tax Act.

The Company follows the provisions contained in ASC Topic

740,

Income Taxes.

The Company recognizes the tax benefit from an uncertain tax position only if it is at least more likely than

not

that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position.

Earnings Per Share, Policy [Policy Text Block]

Earnings Per Share

– The following table sets forth the computation of basic and diluted loss per common share:

	Year Ended December 31,
	2018			2017
Numerator:
Net loss	$	(16,687	)	$	(14,172	)
Denominator:
Basic weighted average shares		8,942,629			8,576,588
Dilutive common stock equivalents using treasury stock method		-			-
Diluted weighted average shares		8,942,629			8,576,588

Basic loss per common share:	$	(1.87	)	$	(1.65	)
Diluted loss per common share:	$	(1.87	)	$	(1.65	)

Weighted average options outstanding		713,331			815,870
Anti-dilutive options not included in the computation		713,331			815,870

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Share-Based Payment

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements -

February 2016,

the FASB issued ASU

No.

2016

02,

Leases (Topic

842

December 15, 2018

and interim periods within fiscal years beginning after

December 15, 2018.

Early application will be permitted for all organizations. The original guidance required application on a modified retrospective basis with the earliest period presented. In

August 2018,

the FASB issued ASU

2018

11,

Targeted Improvements to ASC

842,

which includes an option to

not

restate comparative periods in transition and elect to use the effective date of ASC

842,

Leases, as the date of initial application of transition. Based on the effective date, this guidance will apply and the Company will adopt this ASU beginning on

January 1, 2019

and plan to elect the transition option provided under ASU

2018

11.

one

year.

August 2016,

the FASB issued ASU

No.

2016

15,

Classification of Certain Cash Receipts and Cash Payments, which addresses

eight

specific cash flow issues with the objective of reducing the existing diversity in practice. ASU

2016

became effective for the Company on

January 1, 2018.

ASU

2016

had

material impact on our consolidated financial statements.

May 2017,

the FASB issued ASU

No.

2017

09,

Compensation—Stock Compensation (Topic

718

): Scope of Modification Accounting. The new guidance provides clarity and reduces both (

) diversity in practice and (

) cost and complexity when applying the guidance in Topic

718,

Compensation—Stock Compensation, to a change to the terms or conditions of a share-based payment award. The accounting standard update became effective for The Company beginning

January 1, 2018.

ASU

2017

did

not

have any material impact on our consolidated financial statements.

Note 1 - Business Description, Basis of Presentation and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

	Year Ended December 31,
	201 8		201 7
Balance at beginning of the year	$	472	$	187
Allowance increase (decrease)		159		287
Write offs, net of recoveries		-		(2	)
Balance at end of the year	$	631	$	472

Schedule of Deferred Revenue and Associated Cost of Goods Sold and Gross Profit [Table Text Block]

	As of December 31,
	2018		2017
Deferred revenue	$	283	$	4,635
Deferred cost of goods sold		-		1,555
Deferred gross profit	$	283	$	3,080

Disaggregation of Revenue [Table Text Block]

	Twelve months ended December 31, 2018		Twelve months ended December 31, 2017
Audio Conferencing	$	13,946	$	21,078
Microphones		9,012		13,430
Video products		5,198		7,296
	$	28,156	$	41,804

	Twelve months ended December 31, 2018		Twelve months ended December 31, 2017
North and South America	$	16,534	$	26,310
Asia (including Middle East) and Australia		7,924		11,087
Europe and Africa		3,698		4,407
	$	28,156	$	41,804

Schedule of Product Warranty Liability [Table Text Block]

	Year Ended December 31,
	2018			2017
Balance at the beginning of year	$	245		$	246
Accruals/additions		288			399
Usage/claims		(339	)		(400	)
Balance at end of year	$	194		$	245

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Year Ended December 31,
	2018			2017
Numerator:
Net loss	$	(16,687	)	$	(14,172	)
Denominator:
Basic weighted average shares		8,942,629			8,576,588
Dilutive common stock equivalents using treasury stock method		-			-
Diluted weighted average shares		8,942,629			8,576,588

Basic loss per common share:	$	(1.87	)	$	(1.65	)
Diluted loss per common share:	$	(1.87	)	$	(1.65	)

Weighted average options outstanding		713,331			815,870
Anti-dilutive options not included in the computation		713,331			815,870

Note 2 - Marketable Securities (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Available-for-sale Securities Reconciliation [Table Text Block]

	Amortized cost		Gross unrealized holding gains		Gross unrealized holding losses			Estimated fair value
December 31, 201 8
Available-for-sale securities:
Corporate bonds and notes	$	2,911	$	1	$	(31	)	$	2,881
Municipal bonds		1,849		—		(15	)		1,834
Total available-for-sale securities	$	4,760	$	1	$	(46	)	$	4,715

December 31, 201 7
Available-for-sale securities:
Corporate bonds and notes	$	8,458	$	19	$	(49	)	$	8,428
Municipal bonds		4,637		1		(28	)		4,610
Total available-for-sale securities	$	13,095	$	20	$	(77	)	$	13,038

Available-for-sale Securities, Debt Maturities [Table Text Block]

	Amortized		Estimated
	cost		fair value

Due within one year	$	955	$	951
Due after one year through five years		3,805		3,764
Total available-for-sale securities	$	4,760	$	4,715

Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block]

	Less than 12 months				More than 12 months				Total
	Estimated fair value		Gross unrealized holding losses		Estimated fair value		Gross unrealized holding losses		Estimated fair value		Gross unrealized holding losses
As of December 31, 201 8
Corporate bonds and notes	$	—	$	—	$	2,881	$	31	$	2,881	$	31
Municipal bonds		—		—		1,834		15		1,834		15
	$	—	$	—	$	4,715	$	46	$	4,715	$	46

Note 3 - Business Combinations, Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2018

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]

	Estimated useful lives				As of December 31,
	(in years)				201 8			201 7
Tradename		5	to	7	$	555		$	555
Patents and technological know-how			10			13,377			8,578
Proprietary software		3	to	15		2,981			2,981
Other		3	to	5		323			323
Total intangible assets, gross						17,236			12,437
Accumulated amortization						(6,987	)		(5,894	)
Total intangible assets, net					$	10,249		$	6,543

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

Years ending December 31,
2019	$	1,226
2020		1,048
2021		1,048
2022		1,048
2023		866
Thereafter		5,013
Total	$	10,249

Note 9 - Share-based Payments (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	Year ended December 31,
	2018		2017
Risk-free interest rate, average		—		2.21
Expected option life, average (in years)		—		7.9
Expected price volatility, average		—		40.71
Expected dividend yield		—		2.83

Share-based Compensation, Stock Options, Activity [Table Text Block]

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
As of December 31, 2016		850,232		$	8.06		5.78	$	3,001
Granted		105,000			9.90
Expired and canceled		(3,144	)		10.29
Forfeited prior to vesting		(8,996	)		11.01
Exercised		(178,662	)		5.90
As of December 31, 2017		764,430		$	8.78		6.48	$	1,038
Granted		—			—
Expired and canceled		(106,108	)		7.56
Forfeited prior to vesting		(34,066	)		10.79
Exercised		—			—
As of December 31, 2018		624,256		$	8.87		5.28	$	—
Vested and Expected to Vest at December 31, 2017		764,430		$	8.78		6.48	$	1,038
Vested at December 31, 2017		529,669		$	7.89		5.50	$	1,033
Vested and Expected to Vest at December 31, 2018		624,256		$	8.87		5.28	$	—
Vested at December 31, 2018		548,045		$	8.62		4.90	$	—

Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity [Table Text Block]

	2018		2017
Shares purchased under ESPP plan		23,789		9,110
Plan compensation expense	$	10	$	13

Note 10 - Significant Customers (Tables)

12 Months Ended

Dec. 31, 2018

Schedules of Concentration of Risk, by Risk Factor [Table Text Block]

	Year ended December 31,
	2018		2017
Customer A		*		16.1	%
Total		—		16.1	%

	As of December 31,
	2018			2017
Customer A		*			20.3	%
Customer B		14.5	%		11.0	%
Customer C		11.8	%
Total		26.3	%		31.3	%

Note 12 - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

	Year ended December 31,
	2018			2017
Domestic	$	(7,751	)	$	(12,630	)
Foreign		(2,496	)		(3,263	)
Total	$	(10,247	)	$	(15,893	)

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	Year ended December 31,
	2018			2017
Current:
Federal	$	(71	)	$	577
State		37			(66	)
Foreign		117			(682	)
Total current		83			(171	)
Deferred:
Federal		2,233			1,497
State		667			480
Foreign		495			748
Total		3,395			2,725
Change in valuation allowance		(9,918	)		(833	)
Total deferred		(6,523	)		1,892
Benefit/(provision) for income taxes	$	(6,440	)	$	1,721

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	Year ended December 31,
	2018			2017
Tax benefit (provision) at federal statutory rate	$	2,152		$	5,403
State income tax benefit (provision), net of federal benefit		413			439
Research and development tax credits		250			411
Subpart F inclusion		—			(370	)
Foreign earnings or losses taxed at different rates		12			(540	)
Tax rate change		23			(3,161	)
Other		628			372
Change in valuation allowance		(9,918	)		(833	)
Tax benefit (provision)	$	(6,440	)	$	1,721

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	2018			2017
Deferred revenue	$	50		$	738
Basis difference in intangible assets		3,283			3,403
Inventory reserve		2,235			2,089
Net operating loss carryforwards		4,067			1,627
Research and development tax credits		794			163
Accrued expenses		143			75
Stock-based compensation		362			327
Allowance for sales returns and doubtful accounts		160			119
Difference in property and equipment basis		(185	)		(212	)
Other		551			438
Total net deferred income tax asset		11,460			8,767
Less: Valuation allowance		(11,460	)		(2,236	)
Net deferred income tax asset (liability)	$	—		$	6,531

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

	Year ended December 31,
	2018			2017
Balance - beginning of year	$	652		$	1,189
Additions based on tax positions related to the current year		58			67
Additions for tax positions of prior years		118			520
Reductions for tax positions of prior years		(53	)		-
Settlements		-			(165	)
Lapse in statutes of limitations		(96	)		(959	)
Uncertain tax positions, ending balance	$	679		$	652

Note 1 - Business Description, Basis of Presentation and Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2018	Dec. 31, 2017	Jan. 01, 2018
Inventory, Net, Total			$ 13,228	$ 14,415
Inventory, Noncurrent, Total			$ 8,953	8,708
Number of Reporting Units			1
Goodwill, Impairment Loss		$ 12,724	$ 0	12,724
Cumulative Effect of New Accounting Principle in Period of Adoption				2,782
Contract with Customer, Liability, Current			283	4,635
Retail Related Inventory, Total				1,555
Revenue from Contract with Customer, Including Assessed Tax			28,156	41,804
Advertising Expense			$ 1,037	$ 1,079
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent			21.00%	35.00%
Increase (Decrease) of Net Deferred Tax Assets				$ (3,300)
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability				3,300
Equipment Sales [Member]
Revenue from Contract with Customer, Including Assessed Tax			$ 27,369
Software and Licenses [Member]
Revenue from Contract with Customer, Including Assessed Tax			$ 787
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption				2,782
Accounting Standards Update 2014-09 [Member] \| Difference between Revenue Guidance in Effect before and after Topic 606 [Member]
Contract with Customer, Liability, Current					$ (4,338)
Retail Related Inventory, Total					(1,555)
Revenue from Contract with Customer, Including Assessed Tax	$ 1,252
Accounting Standards Update 2014-09 [Member] \| Retained Earnings [Member] \| Difference between Revenue Guidance in Effect before and after Topic 606 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption					$ 2,783
Customer Relationships [Member]
Impairment of Intangible Assets, Finite-lived				769
Minimum [Member]
Property, Plant and Equipment, Useful Life			2 years
Finite-Lived Intangible Asset, Useful Life			3 years
Maximum [Member]
Property, Plant and Equipment, Useful Life			10 years
Finite-Lived Intangible Asset, Useful Life			10 years
Advance Replacement Units [Member]
Inventory, Net, Total			$ 184	$ 76

Note 1 - Business Description, Basis of Presentation and Significant Accounting Policies - Allowance for Doubtful Accounts Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Balance at beginning of the year	$ 472	$ 187
Allowance increase (decrease)	159	287
Write offs, net of recoveries		(2)
Balance at end of the year	$ 631	$ 472

Note 1 - Business Description, Basis of Presentation and Significant Accounting Policies - Revenue by Product Group (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Revenue from Contract with Customer, Including Assessed Tax	$ 28,156	$ 41,804
Americas [Member]
Revenue from Contract with Customer, Including Assessed Tax	16,534	26,310
Asia Middle East and Australia [Member]
Revenue from Contract with Customer, Including Assessed Tax	7,924	11,087
Europe and Africa [Member]
Revenue from Contract with Customer, Including Assessed Tax	3,698	4,407
Audio Conferencing [Member]
Revenue from Contract with Customer, Including Assessed Tax	13,946	21,078
Microphones [Member]
Revenue from Contract with Customer, Including Assessed Tax	9,012	13,430
Video Products [Member]
Revenue from Contract with Customer, Including Assessed Tax	$ 5,198	$ 7,296

Note 1 - Business Description, Basis of Presentation and Significant Accounting Policies - Warranty Liability (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Balance at the beginning of year	$ 245	$ 246
Accruals/additions	288	399
Usage/claims	(339)	(400)
Balance at end of year	$ 194	$ 245

Note 1 - Business Description, Basis of Presentation and Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Net loss	$ (16,687)	$ (14,172)
Basic weighted average shares outstanding (in shares)	8,942,629	8,576,588
Dilutive common stock equivalents using treasury stock method (in shares)
Diluted weighted average shares outstanding (in shares)	8,942,629	8,576,588
Basic loss per common share: (in dollars per share)	$ (1.87)	$ (1.65)
Diluted loss per common share: (in dollars per share)	$ (1.87)	$ (1.65)
Weighted average options outstanding (in shares)	713,331	815,870
Anti-dilutive options not included in the computation (in shares)	713,331	815,870

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

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+ Details

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

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+ Details

Sales Revenue, Net [Member]

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Note 2 - Marketable Securities - Available-for-sale Securities by Major Security Type (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Amortized cost	$ 4,760	$ 13,095
Gross unrealized holding gains	1	20
Gross unrealized holding losses	(46)	(77)
Available-for-sale securities	4,715	13,038
Corporate Debt Securities [Member]
Amortized cost	2,911	8,458
Gross unrealized holding gains	1	19
Gross unrealized holding losses	(31)	(49)
Available-for-sale securities	2,881	8,428
US States and Political Subdivisions Debt Securities [Member]
Amortized cost	1,849	4,637
Gross unrealized holding gains		1
Gross unrealized holding losses	(15)	(28)
Available-for-sale securities	$ 1,834	$ 4,610

Note 2 - Marketable Securities - Maturities of Available-for-sale Securities (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Due within one year, amortized cost	$ 955
Due within one year, estimated fair value	951
Due after one year through five years, amortized cost	3,805
Due after one year through five years, estimated fair value	3,764
Total available-for-sale securities, amortized cost	4,760
Total available-for-sale securities, estimated fair value	$ 4,715

Note 2 - Marketable Securities - Available-for-sale Marketable Securities in Gross Unrealized Loss Position (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Estimated fair value, less than 12 months
Gross unrealized holding losses, less than 12 months
Estimated fair value, more than 12 months	4,715
Gross unrealized holding losses, more than 12 months	46
Estimated fair value	4,715
Gross unrealized holding losses	46
Corporate Debt Securities [Member]
Estimated fair value, less than 12 months
Gross unrealized holding losses, less than 12 months
Estimated fair value, more than 12 months	2,881
Gross unrealized holding losses, more than 12 months	31
Estimated fair value	2,881
Gross unrealized holding losses	31
US States and Political Subdivisions Debt Securities [Member]
Estimated fair value, less than 12 months
Gross unrealized holding losses, less than 12 months
Estimated fair value, more than 12 months	1,834
Gross unrealized holding losses, more than 12 months	15
Estimated fair value	1,834
Gross unrealized holding losses	$ 15

Note 3 - Business Combinations, Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2018	Dec. 31, 2017
Goodwill, Period Increase (Decrease), Total			$ (12,724)
Goodwill, Impairment Loss	$ 12,724	$ 0	12,724
Capitalized Legal Expenses, Net of Amortization, Related to Defense of Patents from Infringement		6,627,000
Amortization of Intangible Assets, Total		$ 1,093	$ 932

Note 3 - Business Combinations, Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Intangible assets, gross	$ 17,236	$ 12,437
Accumulated amortization	(6,987)	(5,894)
Total	$ 10,249	6,543
Minimum [Member]
Estimated useful lives (Year)	3 years
Maximum [Member]
Estimated useful lives (Year)	10 years
Trade Names [Member]
Intangible assets, gross	$ 555	555
Trade Names [Member] \| Minimum [Member]
Estimated useful lives (Year)	5 years
Trade Names [Member] \| Maximum [Member]
Estimated useful lives (Year)	7 years
Patents and Technological Know-how [Member]
Estimated useful lives (Year)	10 years
Intangible assets, gross	$ 13,377	8,578
Proprietary Software [Member]
Intangible assets, gross	$ 2,981	2,981
Proprietary Software [Member] \| Minimum [Member]
Estimated useful lives (Year)	3 years
Proprietary Software [Member] \| Maximum [Member]
Estimated useful lives (Year)	15 years
Other Intangible Assets [Member]
Intangible assets, gross	$ 323	$ 323
Other Intangible Assets [Member] \| Minimum [Member]
Estimated useful lives (Year)	3 years
Other Intangible Assets [Member] \| Maximum [Member]
Estimated useful lives (Year)	5 years

Note 3 - Business Combinations, Goodwill and Intangible Assets - Estimated Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
2019	$ 1,226
2020	1,048
2021	1,048
2022	1,048
2023	866
Thereafter	5,013
Total	$ 10,249	$ 6,543

Note 4 - Inventories - Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Raw materials	$ 1,795	$ 197
Finished goods	11,433	14,218
Total	13,228	14,415
Raw materials	2,165	2,682
Finished goods	6,788	6,026
Total	$ 8,953	$ 8,708

Note 5 - Property and Equipment - Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment, Gross	$ 9,450	$ 9,150
Accumulated Depreciation and Amortization	(8,062)	(7,601)
Property, Plant and Equipment, Net	1,388	1,549
Office Furniture and Equipment [Member]
Property, Plant and Equipment, Gross	5,041	4,904
Leasehold Improvements [Member]
Property, Plant and Equipment, Gross	1,570	1,509
Vehicles [Member]
Property, Plant and Equipment, Gross	206	160
Manufacturing and Test Equipment [Member]
Property, Plant and Equipment, Gross	$ 2,633	$ 2,577
Minimum [Member]
Property, Plant and Equipment, Useful Life (Year)	2 years
Minimum [Member] \| Office Furniture and Equipment [Member]
Property, Plant and Equipment, Useful Life (Year)	3 years
Minimum [Member] \| Leasehold Improvements [Member]
Property, Plant and Equipment, Useful Life (Year)	1 year
Minimum [Member] \| Vehicles [Member]
Property, Plant and Equipment, Useful Life (Year)	5 years
Minimum [Member] \| Manufacturing and Test Equipment [Member]
Property, Plant and Equipment, Useful Life (Year)	2 years
Maximum [Member]
Property, Plant and Equipment, Useful Life (Year)	10 years
Maximum [Member] \| Office Furniture and Equipment [Member]
Property, Plant and Equipment, Useful Life (Year)	10 years
Maximum [Member] \| Leasehold Improvements [Member]
Property, Plant and Equipment, Useful Life (Year)	6 years
Maximum [Member] \| Vehicles [Member]
Property, Plant and Equipment, Useful Life (Year)	10 years
Maximum [Member] \| Manufacturing and Test Equipment [Member]
Property, Plant and Equipment, Useful Life (Year)	10 years

Note 6 - Leases and Deferred Rent (Details Textual) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) ft² a	Dec. 31, 2017 USD ($)
Operating Leases, Rent Expense, Total \| $	$ 1,053	$ 999
Amortization of Deferred Charges, Total \| $	$ 12	$ 44
Facility in Gainesville [Member]
Area of Real Estate Property	5,000
Lessee, Operating Lease, Renewal Term	10 years
Facility in Salt Lake City [Member]
Area of Real Estate Property	21,443
Lessee, Operating Lease, Renewal Term	5 years
Warehouse in Shenzhen, China [Member]
Area of Real Estate Property	10,700
Facility in Austin, Texas [Member[
Area of Real Estate Property	7,070
Facility in Zaragoza, Spain [Member]
Area of Real Estate Property \| a	3,068
Facility in Chennai, India [Member]
Area of Real Estate Property \| a	6,175
Warehouse in Salt Lake City, Utah [Member]
Area of Real Estate Property	40,000

Note 6 - Leases and Deferred Rent - Future Minimum Lease Payments (Details) $ in Thousands	Dec. 31, 2018 USD ($)
2019	$ 809
2020	700
2021	646
2022	595
2023	606
Thereafter	375
Total minimum lease payments	$ 3,731

Note 7 - Accrued Liabilities - Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Accrued salaries and other compensation	$ 882	$ 1,072
Sales and marketing programs	537	435
Product warranty	194	245
Other accrued liabilities	383	91
Total	$ 1,996	$ 1,843

Note 8 - Commitments and Contingencies (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Long-term Purchase Commitment, Amount	$ 1,247,000
Unrecognized Tax Benefits, Ending Balance	679,000	$ 652,000	$ 1,189,000
Other Accrued Liabilities, Noncurrent	0	152,000
Litigation for Intellectual Property Infringement [Member]
Litigation Settlement, Expense	0	1,111,000
Litigation Settlement, Expense Capitalized	$ 4,698,000	$ 2,289,000

Note 9 - Share-based Payments (Details Textual) - USD ($)			12 Months Ended		13 Months Ended
	Dec. 04, 2018	Feb. 21, 2018	Dec. 31, 2018	Dec. 31, 2017	Mar. 31, 2018	Mar. 01, 2017	Dec. 31, 2016	Dec. 12, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period			10 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance			624,256	764,430			850,232
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value			$ 0	$ 3.31
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value			$ 0	$ 646,000
Allocated Share-based Compensation Expense, Total			463,000	665,000
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense			0	0
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options			$ 262,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			1 year 62 days
Stock Issued During Period, Value, Employee Stock Purchase Plan			$ 39,000	$ 66,000
Stock Repurchase Program, Additional Authorized Amount						$ 10,000,000
Stock Repurchased During Period, Shares				551,936	17,549
Share Repurchase Program, Average Purchase Price Per Share				$ 9.28	$ 8.39
Common Stock, Dividends, Per Share, Declared		$ 0.07
Proceeds from Issuance of Common Stock	$ 9,883,000		$ 9,883,000
Shares Issued, Price Per Share	$ 1.20
Number of Shares, Oversubscribed	754,868
Dividends Payable, Date to be Paid		Mar. 21, 2018
Dividends Payable, Date of Record		Mar. 07, 2018
Common Stock [Member]
Stock Issued During Period, Shares, Employee Stock Purchase Plans			23,789	9,110
Stock Issued During Period, Value, Employee Stock Purchase Plan
Stock Repurchased During Period, Shares			17,549	551,936
Stock Issued During Period, Shares, New Issues	8,306,535		8,306,535
Directors and Officers [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			3 years
Other Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			4 years
The 2007 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized								2,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance			624,256
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares, Authorized and Unissued			870,838
The 2007 Equity Incentive Plan [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			3 years
The 2007 Equity Incentive Plan [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			4 years
The 1998 Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares, Authorized and Unissued			0
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized			500,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant			442,994	466,783
ESPP Participation Criteria, Maximum Percentage of Voting Power			5.00%
Stock Issued During Period, Shares, Employee Stock Purchase Plans			23,789	9,110
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent			85.00%
Share-based Compensation Arrangement by Share-based Payment Award, Discount on Purchase Price of Common Stock, Percent			15.00%
Employee Stock Purchase Plan [Member] \| Maximum [Member]
Stock Issued During Period, Shares, Employee Stock Purchase Plans			2,500
Stock Issued During Period, Value, Employee Stock Purchase Plan			$ 25,000

Note 9 - Share-based Payments - Black-scholes Assumptions (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Risk-free interest rate, average		2.21%
Expected option life, average (Year)		7 years 328 days
Expected price volatility, average		40.71%
Expected dividend yield		2.83%

Note 9 - Share-based Payments - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Number of shares, outstanding at beginning of period (in shares)	764,430	850,232
Weighted average exercise price, beginning of period (in dollars per share)	$ 8.78	$ 8.06
Weighted average remaining contractual term (Year)	5 years 102 days	6 years 175 days	5 years 284 days
Aggregate intrinsic value		$ 1,038	$ 3,001
Number of shares, granted (in shares)		105,000
Weighted average exercise price, granted (in dollars per share)		$ 9.90
Number of shares, expired and canceled (in shares)	(106,108)	(3,144)
Weighted average exercise price, expired and canceled (in dollars per share)	$ 7.56	$ 10.29
Number of shares, forfeited prior to vesting (in shares)	(34,066)	(8,996)
Weighted average exercise price, forfeited prior to vesting (in dollars per share)	$ 10.79	$ 11.01
Number of shares, exercised (in shares)		(178,662)
Weighted average exercise price, exercised (in dollars per share)		$ 5.90
Number of shares, outstanding at end of period (in shares)	624,256	764,430	850,232
Weighted average exercise price, end of period (in dollars per share)	$ 8.87	$ 8.78	$ 8.06
Number of shares, vested and expected to vest (in shares)	624,256	764,430
Weighted average exercise price, vested and expected to vest (in dollars per share)	$ 8.87	$ 8.78
Weighted average remaining contractual term, vested and expected to vest (Year)	5 years 102 days	6 years 175 days
Aggregate intrinsic value, vested and expected to vest		$ 1,038
Number of shares, vested at end of period (in shares)	548,045	529,669
Weighted average exercise price, vested at end of period (in dollars per share)	$ 8.62	$ 7.89
Weighted average remaining contractual term, vested (Year)	4 years 328 days	5 years 182 days
Aggregate intrinsic value, vested		$ 1,033

Note 9 - Share-based Payments - Employee Stock Purchase Plans (Details) - Employee Stock Purchase Plan [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Shares purchased under ESPP plan (in shares)	23,789	9,110
Plan compensation expense	$ 10	$ 13

Note 10 - Significant Customers - Concentration Risk by Risk Factor of Sales Revenue and Accounts Receivable (Details) - Customer Concentration Risk [Member]

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Sales Revenue, Net [Member] | Customer A [Member]

16.10%

Accounts Receivable [Member]

^[1]

16.10%

Accounts Receivable [Member] | Customer A [Member]

26.30%

31.30%

Accounts Receivable [Member] | Customer B [Member]

^[1]

20.30%

Accounts Receivable [Member] | Customer C [Member]

14.50%

11.00%